|
Since
new house is just like any other manufactured product, the
sales tax department had proposed a 5 per cent VAT on new
flats in 2006, a move that was opposed by builders. “VAT
should not be applicable for housing projects as such a
tax will never bring affordable houses to consumers,”
said Deshmukh and added that his government would soon
work on removing VAT on property purchase.
Pointing
out that there was a deficit of 27 billion houses in India
at the end of the 10th five year plan, Deshmukh said that
the year 2009 would be the housing year in Maharashtra.
“Over the next two years, we will be constructing 10
lakh houses,” he said. According to the state housing
department, these projects would include houses generated
through schemes under Maharashtra Housing and Area
Development Authority, National Urban Renewal Mission,
Indira Awas Yogna, Nivara Yojana and the Slum
Rehabilitation Authority.
Asked
about introducing the much-delayed housing regulatory
commission draft bill in the assembly, Deshmukh said it
may be a while before the state government imposed
regulatory mechanism on the real estate industry. “There
are a few issues that need to be sorted out,” he said
without elaborating on the issues.
Housing
Secretary Sitaram Kunte explained that following requests
that the draft bill be opened up for public discussion, it
has been sent to the speaker of the assembly for his
approval.
Urging
developers to come up with cost-effective ways to
facilitate affordable housing, Deshmukh asked them to
build houses for the common man drawing a parallel with
the Nano car manufactured by the Tatas.
Deshmukh
also agreed to extend policy decisions such as the recent
hike in Floor Space Index (FSI) from 1 to 1.33 in Mumbai
to the entire state. Another Mumbai-specific policy that
will be made applicable to the entire state is the
September 2008 government decision to allow IT parks —
which enjoy higher FSI— to utilise 80 per cent of the
total constructed area for financial services and banks.
Source
: Mumbai Newsline - Mumbai, India, dated 11/11/2008
|
